Thursday, June 19, 2008

Webinfosys's Local News : Lenient sentence for Indian-origin fraudster in US

NEW YORK: An Indian-origin man who masterminded a major international fraud that led to USD 680 million in losses to 20 banks worldwide has escaped with a lighter sentence of seven months in prison, the time he has already served.

Anil Anand, former chief financial officer of Allied Deals Inc -- a metals trading firm, was also asked by US District Court to pay USD 683.6 million in restitution.

Anand, 46, had pleaded guilty to the charges in 2002 and faced upto 30 years in prison but escaped with a lenient sentence because he cooperated with prosecutors which resulted in the arrest of at least 15 people.

The defrauded banks, located in the United States, Europe and Asia, included JPMorgan Chase & Co, Fleet National Bank; PNC Bank; Dresdner Bank Lateinamerika AG; China Trust Bank; and Hypo Vereins Bank.

US District Attorney for Southern District of New York Michael J Garcia said Allied Deals companies were controlled by brothers Narendra Rastogi in the US and Virendra Rastogi in Britain.

Anand and the Rastogi brothers and their co-conspirators had set up and controlled an elaborate network of hundreds of sham, nominee companies around the world to serve as fake purchasers of metal from Allied Deals so that the defendants could get loans from the victim banks.

But the prosecutors said "hundreds, if not thousands," of metal transactions upon which the loans were based simply did not exist.

To know More About Share Market Technical Analysis Click Here For Share Gurukul


Back To Index Page

No comments: